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Sonos Announces New Quality and Customer Experience Commitments

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Sonos (NASDAQ: SONO) has announced seven new commitments following an internal review of its app release in May. These commitments aim to address root causes of app problems and regain customer trust. Key initiatives include:

1. Enhancing customer experience focus
2. Increasing pre-launch testing stringency
3. Gradual release of major app changes
4. Appointing a Quality Ombudsperson
5. Extending home speaker warranties
6. Regular software upgrades
7. Establishing a Customer Advisory Board

Sonos CEO Patrick Spence emphasized the company's dedication to fixing the app and improving customer experience. The Executive Leadership Team will forgo annual bonuses unless app quality improves and customer trust is rebuilt. Sonos reports that 80% of missing app features have been reintroduced, with nearly 100% expected to be restored soon.

Sonos (NASDAQ: SONO) ha annunciato sette nuovi impegni a seguito di una revisione interna del rilascio della sua app a maggio. Questi impegni mirano a risolvere le cause principali dei problemi dell'app e a riconquistare la fiducia dei clienti. Le iniziative chiave includono:

1. Rafforzare il focus sulla customer experience
2. Aumentare la rigorosità dei test prima del lancio
3. Rilascio graduale delle modifiche principali all'app
4. Nomina di un Ombudsman della Qualità
5. Estensione delle garanzie sugli altoparlanti domestici
6. Aggiornamenti software regolari
7. Creazione di un Consiglio Consultivo dei Clienti

Il CEO di Sonos, Patrick Spence, ha sottolineato l'impegno dell'azienda a risolvere i problemi dell'app e a migliorare l'esperienza dei clienti. Il Team di Leadership Esecutiva non riceverà premi annuali a meno che la qualità dell'app non migliori e la fiducia dei clienti non venga ricostruita. Sonos riporta che l'80% delle funzionalità mancanti dell'app sono state reintrodotte, con quasi il 100% previsto per essere ripristinato a breve.

Sonos (NASDAQ: SONO) ha anunciado siete nuevos compromisos tras una revisión interna del lanzamiento de su aplicación en mayo. Estos compromisos tienen como objetivo abordar las causas raíz de los problemas de la aplicación y recuperar la confianza de los clientes. Las iniciativas clave incluyen:

1. Mejorar el enfoque en la experiencia del cliente
2. Aumentar la rigurosidad de las pruebas previas al lanzamiento
3. Lanzamiento gradual de los cambios importantes en la aplicación
4. Nombrar un Defensor de la Calidad
5. Ampliar las garantías de los altavoces domésticos
6. Actualizaciones de software regulares
7. Establecer un Consejo Asesor de Clientes

El CEO de Sonos, Patrick Spence, enfatizó el compromiso de la empresa para solucionar la aplicación y mejorar la experiencia del cliente. El Equipo de Liderazgo Ejecutivo renunciará a los bonos anuales a menos que la calidad de la aplicación mejore y se reconstruya la confianza del cliente. Sonos informa que el 80% de las funcionalidades faltantes de la aplicación se han reintroducido, y se espera que casi el 100% se restablezca pronto.

Sonos (NASDAQ: SONO)는 5월에 앱 출시를 위한 내부 검토를 진행한 후 7가지 새로운 약속을 발표했습니다. 이러한 약속은 앱 문제의 근본 원인을 해결하고 고객의 신뢰를 회복하는 것을 목표로 하고 있습니다. 주요 이니셔티브는 다음과 같습니다:

1. 고객 경험 강화
2. 출시 전 테스트 엄격성 증가
3. 주요 앱 변경 사항의 점진적 릴리스
4. 품질 옴부즈맨 임명
5. 홈 스피커 보증 연장
6. 정기 소프트웨어 업그레이드
7. 고객 자문 위원회 설립

Sonos의 CEO인 패트릭 스펜스는 회사가 앱 문제를 해결하고 고객 경험을 개선하기 위한 의지를 강조했습니다. 경영진은 앱의 품질이 개선되고 고객의 신뢰가 회복되지 않는 한 연간 보너스를 받지 않을 것입니다. Sonos는 누락된 앱 기능의 80%가 재도입되었고, 거의 100%가 조만간 복원될 것으로 예상된다고 보고했습니다.

Sonos (NASDAQ: SONO) a annoncé sept nouveaux engagements suite à un examen interne de la publication de son application en mai. Ces engagements visent à traiter les causes profondes des problèmes de l'application et à regagner la confiance des clients. Les initiatives clés incluent :

1. Renforcer l'accent sur l'expérience client
2. Augmenter la rigueur des tests avant lancement
3. Lancement progressif des changements majeurs de l'application
4. Nommer un Ombudsman de la Qualité
5. Étendre les garanties des enceintes domestiques
6. Mises à jour régulières du logiciel
7. Établir un Conseil Consultatif des Clients

Le PDG de Sonos, Patrick Spence, a souligné l'engagement de la société à résoudre les problèmes de l'application et à améliorer l'expérience client. L'équipe de direction renoncera aux primes annuelles à moins que la qualité de l'application ne s'améliore et que la confiance des clients ne soit rétablie. Sonos rapporte que 80 % des fonctionnalités manquantes de l'application ont été réintroduites, et près de 100 % devraient être restaurées bientôt.

Sonos (NASDAQ: SONO) hat nach einer internen Überprüfung der Veröffentlichung seiner App im Mai sieben neue Verpflichtungen angekündigt. Diese Verpflichtungen zielen darauf ab, die Ursachen der Probleme der App anzugehen und das Vertrauen der Kunden zurückzugewinnen. Wichtige Initiativen sind:

1. Verbesserung der Kundenservicefokussierung
2. Erhöhung der Strenge bei den Tests vor dem Start
3. Gradualfreigabe großer Änderungen der App
4. Ernennung eines Qualitätsombudsmanns
5. Verlängerung der Garantien für die Lautsprecher im Haus
6. Regelmäßige Software-Updates
7. Einrichtung eines Kundenbeirats

Der CEO von Sonos, Patrick Spence, betonte das Engagement des Unternehmens, die App zu reparieren und die Kundenerfahrungen zu verbessern. Das Führungsteam wird auf Jahresboni verzichten, es sei denn, die Qualität der App verbessert sich und das Vertrauen der Kunden wird wiederhergestellt. Sonos berichtet, dass 80 % der fehlenden App-Funktionen wieder eingeführt wurden und nahezu 100 % in naher Zukunft erwartet werden.

Positive
  • Commitment to enhance customer experience and product quality
  • Extension of manufacturer's warranty by one year for home theater and plug-in speaker products
  • Regular software upgrades every 2-4 weeks
  • Establishment of a Customer Advisory Board for feedback
  • 80% of missing app features reintroduced, with nearly 100% expected soon
  • Executive Leadership Team's bonus tied to app improvement and customer trust rebuilding
Negative
  • Acknowledgment of missteps in the May app release
  • Ongoing need to fix and improve the app experience
  • Potential impact on company performance due to app issues

Insights

The announcement of Sonos' new quality and customer experience commitments is a significant step towards addressing recent issues and rebuilding trust. The company's focus on improving product development processes, enhancing testing and introducing gradual changes demonstrates a renewed commitment to quality.

Key positive aspects include:

  • Extended warranties for home theater and plug-in speaker products
  • Regular software updates every 2-4 weeks
  • Establishment of a Customer Advisory Board
  • Appointment of a Quality Ombudsperson

These measures could help Sonos regain customer confidence and potentially improve long-term brand loyalty. However, the impact on short-term financial performance may be mixed, with potential increased costs from extended warranties and more rigorous testing processes.

The decision to tie executive bonuses to improvements in app quality and customer trust is a strong signal of commitment but may also indicate the severity of the recent issues. Investors should monitor customer satisfaction metrics and product launch success in the coming quarters to gauge the effectiveness of these initiatives.

While Sonos' commitment to quality improvements is commendable, the financial implications are nuanced. The extended warranties and increased investment in testing and development processes could lead to higher short-term costs, potentially impacting profitability. However, these measures may also reduce long-term warranty claim expenses and customer support costs if successful.

The company's decision to withhold executive bonuses for FY2025 unless improvements are achieved is a significant alignment of management incentives with customer satisfaction. This could be viewed positively by investors focused on corporate governance.

Key financial considerations:

  • Potential increase in R&D and quality assurance expenses
  • Possible reduction in warranty claim costs over time
  • Impact on customer retention and potential revenue growth

Investors should closely monitor Sonos' upcoming financial reports for any changes in operating expenses, gross margins and customer acquisition costs. The success of these initiatives could be important for Sonos' competitive position in the premium audio market and its long-term financial performance.

The company promises new standards and pledges to continue rebuilding trust

SANTA BARBARA, Calif.--(BUSINESS WIRE)-- Sonos (Nasdaq: SONO) the leading sound experience company, today announced seven new commitments resulting from an internal review of its app release in May. These commitments will ensure Sonos continues to deliver the best wireless audio system in the world and its customers always enjoy the quality for which Sonos is known.

“Our priority since its release has been - and continues to be - fixing the app. There were missteps, and we first went deep to understand how we got here, and then moved to convert those learnings into action,” said Sonos CEO Patrick Spence. “We are committed to making changes to get us back to being the brand people love by offering the best audio system for the home and beyond. We must always do right by our customers, and I am confident that, with these commitments, we will.”

To ensure that we always deliver a superior customer experience, we are making these commitments which fall into two categories: addressing the root causes of the problems with the app release, and regaining the trust of our customers. On the former we commit to:

  • Unwavering focus on the customer experience. To ensure that we deliver the highest level of customer experience, we will always establish ambitious quality benchmarks at the outset of product development and will not launch products before meeting these criteria. We will also enhance the tools necessary to measure the quality of the experience actually being delivered to customers to ensure that we maintain the standards our customers expect.
  • Increase the stringency of our pre-launch testing phases. Our beta testing program will include more types of customers and more diverse setups for a longer testing period. This will allow us to find, diagnose and solve customer concerns more quickly before going to market.
  • Demonstrate humility when introducing changes. In contrast to the all-at-once automated app release we issued in May, any major change to the Sonos app will be released gradually, allowing customers to adjust and provide feedback before it becomes the default. For new features smaller in scope, we will introduce an opt-in experimental features option in the app for customers who would like to participate in testing them.
  • Appoint a Quality Ombudsperson. This new role will ensure our employees have a clear path to escalate any concerns in terms of quality and customer experience. This person will be consulted by executive leadership throughout the development process and before any product launches. In this role, the ombudsperson will guarantee transparency and publish a report to management and employees twice per year, and will present regularly to the Sonos board of directors.

In addition, we are also committing to the following to begin to regain the trust of our customers:

  • Extend our home speaker warranties. To reflect our strong belief in the quality of our products, we will extend the manufacturer’s warranty by one year for all home theater and plug-in speaker products currently under warranty.
  • Relentlessly improve the app experience with regular software upgrades. We will roll out updated mobile software versions every 2-4 weeks to optimize and enhance the software experience, even once this issue is resolved.
  • Establish a Customer Advisory Board. To ensure we never lose sight of the voice of the customer, this board will provide feedback and insights from a customer perspective to help shape and improve our software and products before they are launched.

Many of these initiatives are already underway and others will be implemented through the remainder of the year. To demonstrate the significance of these commitments to the company, no member of the Executive Leadership Team will accept any annual bonus payout for the October 2024 - September 2025 fiscal year unless the company succeeds in improving the quality of the app experience and rebuilding customer trust.

Update on the Sonos app

Since the launch of the new app in May, the Sonos team has been working diligently to release new software updates approximately every two weeks, and rapidly roll out new features and meaningful improvements and fixes. More than 80% of the app’s missing features have been reintroduced and the company expects to have almost 100% restored in the coming weeks. The reliability and speed of the app has improved with each release.

“We’ve made good progress on addressing many of the software issues, and these new commitments will drive us to emerge from this period with an even stronger commitment to quality,” Spence said.

For more information, visit sonos.com, and follow along on @sonos.

About Sonos

Sonos (Nasdaq: SONO) is the world’s leading sound experience company. As the inventor of multi-room wireless home audio, Sonos innovation helps the world listen better by giving people access to the content they love and allowing them to control it however and wherever they choose. Known for delivering an unparalleled sound experience, thoughtful design aesthetic, simplicity of use, and an open platform, Sonos makes the breadth of audio content available to anyone. Sonos is headquartered in Santa Barbara, California. Learn more at www.sonos.com.

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Source: Sonos

FAQ

What commitments has Sonos (SONO) made to improve its app and customer experience?

Sonos has announced seven commitments, including enhancing customer experience focus, increasing pre-launch testing, gradual release of major app changes, appointing a Quality Ombudsperson, extending warranties, regular software upgrades, and establishing a Customer Advisory Board.

How is Sonos (SONO) addressing the issues with its May app release?

Sonos is releasing software updates every two weeks, rapidly rolling out new features and improvements. They've reintroduced over 80% of missing app features and expect to restore almost 100% in the coming weeks.

What warranty changes has Sonos (SONO) announced for its products?

Sonos has extended the manufacturer's warranty by one year for all home theater and plug-in speaker products currently under warranty.

How is Sonos (SONO) ensuring executive accountability for app improvements?

Sonos' Executive Leadership Team will not accept any annual bonus payout for the fiscal year 2024-2025 unless the company succeeds in improving the app experience and rebuilding customer trust.

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